How to set up a BOI company in Thailand?

To start a BOI company in Thailand and make it work well, you need to plan carefully and follow the rules. A really smart move that can really help is getting permission from the Board of Investment (BOI)

Let’s explore some of the things you should know about setting up a BOI company in Thailand. 

What is the Board of Investment in Thailand?

Since 1966, the Office of the Board of Investment, also known as the BOI, has been helping businesses invest in Thailand. They offer tax breaks and other benefits to encourage investment. The BOI doesn’t just help local businesses; it also supports Thai companies looking to expand internationally. Over the past fifty years, the BOI has become really important for Thailand’s economy. They focus on making Thai businesses competitive and ensuring the country grows steadily.

What is a BOI company in Thailand?

The Thailand Board of Investment (BOI) is a government agency that encourages foreign investment in Thailand. If a Thai company gets certified by the BOI, it can enjoy many benefits. These include big tax breaks, getting work permits easily without needing four Thai employees per permit, quick processing of work permits at the One Stop Service Centre, and even the ability to own land, even if most of the company’s owners aren’t Thai. Thanks to the BOI company in Thailand, having a business is easier than before. 

BOI Company Benefits

Tax incentives are benefits provided by the government to encourage certain activities or investments. These incentives include:

• Not having to pay or paying less tax when importing goods.
• Not having to pay tax on the money a company makes, and not having to pay tax on the profits the company shares with its owners.
• Being able to subtract extra costs, like for transportation or electricity, from a company’s taxes.
• Not having to pay corporate income tax for a certain number of years for different kinds of activities, like research and development, building important things for the country, or using fancy technology to make things better.
• Not having to pay corporate income tax for a shorter time for activities that are still important, but don’t use the fanciest technology.
• Not having to pay corporate income tax for a little while for activities that add value to the country’s resources and how things are made here.

Apart from tax benefits, there are other perks too:

• Getting permission to hire skilled workers from other countries.
• Being allowed to own land.
• Being allowed to send money to other countries in their currency.
• Being protected from the government taking over the business.
• Sometimes, the government might add more benefits, especially for companies already getting help from the government.

What Is the Process for Applying?

Applying for a BOI company in Thailand is a big deal and can be really complicated. It’s mainly for big investors. To make sure everything goes smoothly and you don’t waste time or money, you need to meet all the requirements. It’s smart to get expert help, like from a lawyer, who knows Thai laws and can guide you through the process. Andaman Apex helps clients who can get the full support they need because the process can take a long time and if you mess up, you could lose your investment. Get in touch with us to see if your company qualifies for BOI certification and start enjoying the perks it brings.

BOI Company in Thailand Process and Procedures

Feasibility Study

First, we check if your business idea can succeed with BOI (Board of Investment). We talk to government officers to see if your plan is good and what changes you might need.

BOI Application and Interview:

Our BOI experts help you fill out forms and talk to officers. We make sure you meet all the requirements. Getting help is important to avoid problems. The process can take a long time, especially for big investments.

• Less than 200M THB: Decision in 40 days.
• More than 200M THB: Decision in 60 days.
• More than 2B THB: Decision in 90 days.

BOI Approval and Terms:

If approved, you’ll get a letter with conditions and benefits. You need to reply within 30 days. If you can’t, you can ask for more time, but only three times.

Registering Your BOI Company:

You need to set up a Thai company within six months of approval. You send certain documents to the BOI offices.

BOI Work Permits and Visas:

Before hiring foreign staff, you need to register online. Then, you can apply for work permits and visas.

BOI Reporting and Rules:

After approval, you need to follow some rules:

• Import machinery in 30 months.
• Finish construction in 36 months.
• Get permission for long halts or selling machinery.

If you break rules, you’ll get a warning and might lose BOI benefits.

BOI Accounting:

A BOI company in Thailand has to do special accounting. It’s important to follow the rules for taxes and reporting. Inspectors check to make sure you’re following the rules.

The Future of BOI Companies  

To do well in a BOI company in Thailand, you need to keep improving, not just achieve something once. It’s about always changing, growing, and making smart choices. Whether you’re just starting out or already established, it’s smart to talk to the best lawyers in Thailand to learn how to keep growing your business.

Frequently Asked Questions